Top 5 Ways To Boost Your Credit Score

1. Monitor your credit. You can’t boost your credit score if you don’t even know what it is, much less why. In order to make improvements, you need to know your credit scores and learn more about your credit history and the accounts that affect it. The top credit monitoring services not only provide you with your 3-bureau credit report and scores for free, but they also monitor your credit daily and alert you of any changes. This will help you get educated about your credit and protect you from identity fraud, which can be detrimental to your score. On top of providing you with your personal credit information, many of these services, like Identity Guard, for example, offer personalized “what-if simulators” that will estimate how your credit scores might improve if you took various actions. Not only that, but they explain how certain items in your credit history have positively or negatively affected your score.

Services we recommend include Identity Guard, which monitors your credit daily, updates your credit score every 3 months and comes with a complimentary subscription to Zone Alarm Internet Security Suite, and FreeScoresAndMore.com, which includes all of the same perks plus updates your report and scores every month. Read full reviews of our top picks for credit report monitoring here.

2. Fix any errors on your credit report. Once you start looking at your credit reports, there is a possibility that you may find an error. In fact, almost 52 million Americans had errors on their credit reports in 2012, according to the FTC. These errors may be simple office mistakes or worse, identity fraud. No matter what the cause of the error is, it could be lowering your credit score. Credit monitoring services like Identity Guard, FreeScoresAndMore.com and TrustedID have helpful resources that can help you file disputes to the credit bureaus, plus they have knowledgable customer support that can help you to boot.

In order to fix any credit report errors, you need to contact the particular credit bureau in which the error was found. To do this, you must first review all three of your credit reports — Equifax, Experian and Transunion. As discussed above, the easiest way to get your credit reports is to sign up for credit monitoring.

If you only wish to look at your credit report to find any errors, you should note that every consumer is entitled to a free credit report each year from annualcreditreport.com. The reason why we recommend signing up for an ongoing credit report monitoring service, however, is because annualcreditreport.com does not provide you with credit scores, it does not help explain your credit scores and because you can only get the report once a year, you will not get the benefit of monitoring, which will help alert you to any changes and in turn, any errors.

3. Minimize your Credit Utilization Ratio. In order to fix your credit score, it is important to know specific variables that affect it. On top of fixing credit report errors and making timely payments on your loans (which I will discuss below), considering your Credit Utilization Ratio is a key element in boosting your score. The ratio is calculated like this:

A higher credit utilization ratio affects your credit score negatively because it shows that you are using more of your credit limit. In other words, it is good to have a large amount of credit available, but bad to be using a large fraction of it.

To combat a high credit utilization ratio:

– Try not using your loans and/or credit cards to their limit.

– Do not close old credit cards, even if you do not use them. The more credit you have available and not in use, the lower (better) your credit utilization ratio will be

Note that if you’re thinking of signing up for a new credit card, make sure to only apply if you think you will be approved. This is because the credit inquiries that result from applying for a credit card may lower your credit score slightly in the short term; however, if you are approved, the improvement in your credit utilization ratio will more than make up for the initial effect of applying for credit. Want to learn more about signing up? Visit our credit card FAQs page.

4. Stay on top of your balances and payments. If you want to stay on top of your credit score, you need to stay on top of your credit accounts. Not making payments on time lowers your credit score significantly and causes you to pay finance charges. Sign onto your accounts online and make sure you know your balances and payment deadlines, in short — get organized. If you are currently in default on a credit account, it is definitely best to at least pay the minimum amount in order to get current. While a late payment history is definitely bad, currently late payments will destroy your score — pay on time!

If you’re tired of paying off your credit card only to accrue more interest, try transferring your balance to a credit card with 0% interest. This way, you can make payments each month without worrying about interest payments. Check out these top balance transfer credit cards.

Signing up for credit report monitoring is a good way to view your credit reports, which lay out all of your past and current accounts in an organized way. This allows you to view all of your accounts and to catch any mistakes you may have made in the past that affected your score negatively.

5. Get a secured credit card. Having and using credit responsibly will raise your credit score, but if you are unable to get a regular, unsecured credit card because of a limited credit history or other credit issues, then a secured credit card, like the Capital One Secured Mastercard, that actually reports to the three bureaus is a great option for you. When you sign up for a secured card, you are required to provide cash collateral, which becomes your credit limit. You can then use this card as you would a regular credit card — making purchases and paying off your balance at deadline each month. For example, if you put a $300 deposit on the secured card, this is the amount you are allowed to spend.

By using a secured credit card and making payments on it you are showing that you are responsible with credit. This will reflect well on your credit score, and if you maintain a positive payment history on the card, oftentimes the company may qualify you for an unsecured credit card. Again, you need to make sure that you sign up for a secured credit card that reports to the three credit bureaus. Find the perfect secured credit card here.

CreditKarma.com is pushing marketing like crazy that their service is free. It apparently is. However, nothing is “free” by such a company. Somewhere they are making their buck. For one I am sure they are a data mining company, data mining from you when you sign up for free, and making your data available to others who pay. And you don’t know who those others are.

I have a Capital One card. They have a free credit score service. It sends me monthly an email if any inquiries, or other changes occurred that might affect my credit score. They have a “what if” feature that allows me to try all sorts of changes to see how they might affect my credit score. Nice service. Since I’m a customer they already have all my information so I don’t think they are doing it for any other reason than as an added customer service. I can check my credit score anytime on the Cap One site for free.

Knowing how companies are slick at offering one a free entrance into the front door, only to then somehow make money on me on the backend, I’ve become quite distrusting of CreditKarma-type offers.

OttoSeptember 23, 2014

@Vikash…You should peroidically use the cards. Make minor purchaces and pay them off as soon as the bill arrives. This usually prevents the company from closing the account for lack of use/inactivity!

AlanSeptember 18, 2014

You can go to annualcreditreport.com and get all 3 bureau’s scores once a year, totally free and without having to sign up for anything, unlike some of the others listed above.

VikashAugust 26, 2014

I wasn’t aware of it, but you should never close credit cards down if you have a credit limit. Simply pay them off and don’t use them. Cut them up if you want. Just don’t close them.

MelodyAugust 23, 2014

If you are having problems with one of the Credit Reporting Agencies – CRA (aka credit bureau) file a complaint with the Consumer Financial Protection Bureau. They were established by Congress and will forward your complaint to the CRA. The CRA will answer. FYI Credit Karma, they settled with the Federal Trade Commission this year that they failed to take reasonable steps to secure their mobile apps. On the plus side they have to take additional security steps and will be inspected for the next 20 years by an independent agency. As for credit monitoring read the fine print, terms and conditions, etc. You will be surprised on what you find. I looked at one company in which the fine print stated they are not responsible if your information is compromised, even if it was cause by them. Credit scores are nice; however, if you understand how credit effects your score your score then just get your reports, fix them and build credit. Your score will improve. There are a slew of articles about what affects your credit score so you can do the research yourself. The number one reason someone’s identity was stolen and used in 2013 (according to the Consumer Sentinel Network [FTC] ) was for Government Documents and Benefits. Somehow I don’t think credit monitoring will stop that. Oh if you feel you are or have suspicion that you are or could be a victim of identity theft you can place a fraud alert on with the CRA’s. You can then get a free credit report from all thee CRA’s. In todays environment pretty much everyone has potential to be a victim.

Justine O'TooleAugust 15, 2014

needs to be mentioned: everyone is legally entitled to a FREE credit report from the three major credit agencies once every 12 months. I’ve personally experienced the hassle they try to put you through in obtaining your legal right but persist & don’t fork over what you don’t have to, they love for everyone to just hand them the $12,- on top of what they receive from all the companies that pay to look at your life.

MartinAugust 4, 2014

“how can i pay my credit cards debt when am out off a job ????”
1. Learn to spell
2. Get one. If not (assuming you want to act legally)…
3. Marry Daddy or Mama Warbucks. If not…
4. Mulch off family/friends. If not…
5. Get government “entitlements”. If not…
6. Beg. If not…
7. Die

dannyJuly 24, 2014

how can i pay my credit cards debt when am out off a job ????

Allison DiceJuly 20, 2014

I have recently decided to look into buying a home, I had a loan officer pull up my credit report, much to my supprise I only have 8 reports totalling less tjan $2,600. But my scores are highest 584 and lowest 543. My loan officer wants to get it to 620. I recently purchased a car which haven’t made my first payment yet, and she suggested I obtain a secured credit card. Need this score upped QUICKLY…any suggestions???

ChadJuly 9, 2014

A lot of the comments are mentioning just working with Credit Karma. I agree that Credit Karma is a great site to find out some information, but if you are planning on disputing any negative information you will need your full detailed report.

Sometimes the safest way to get a full report is just to spend the $12 and get it directly from the Credit Bureaus themselves. You know… right from their website! :D

steveJune 26, 2014

This article is only partially true. Your credit score will always be lower than what the agencies tell you. Even Capital one or Discover. The creditors always get a lower score then what the credit agencies tell you or any perceived actual scores that your credit card may leave you to believe is factual. If you don’t believe it, check your score from the agencies and the credit card companies and then apply for a loan, like car loan or even better yet, a refy on your home, car loan, etc. and you will see that your score will be lower then you have been paying for. Just check your credit by the free annual report that the agencies must give you every year for any derogs, that is all they are worth!

BrendaJune 7, 2014

Capital One credit cards now give you your credit score on your statement.

Kurt UnderkoflerMay 11, 2014

This is great advice for people who thinking about a buying a New Home. To many people start looking for homes for sale. Before checking their credit scores or there ability to buy a home. Thanks Kurt

Tony GMay 5, 2014

Two years from last conversation/contact with creditor. So if you call them10 years later you opened a can of worms. All Credit Karma is also used to gather new addresses of people that others are looking for, so think twice if you want to be found.

LuluApril 30, 2014

i tried several different “free” credit check websites but they all start charging at some point. I had similar experience as other people who got robbed for these services. I use Credit Karma now. TOTALLY free! no strings. They give the most complete info I have found yet on a site plus really helpful recommendations and credit calculators that allow you to see how your creidt score would likely change based on specific changes in your credit report (e.g. paying off all credit debt or increasing available balances, etc). Plus they have a smartphone app that makes checking my scores really convenient.

Sandy NApril 26, 2014

How long before a credit card debt not paid a person no longer responsible to pay back?

Linda S.April 7, 2014

Helen, you will need to “dispute” the debt through the 3 reporting agencies. It will be their responsiblity to verify the debt, and/or remove it. Since the debt is old, the apartment complex has probably sold the debt to a collection type agency. Typically the original debt verification is no longer with the originator. You can dispute the debt online with all 3 agencies.

LindaApril 2, 2014

You didn’t mention if it was one of the 3 major credit agencies. I agree with CONCERNED CITIZEN. And, I think the NAME of the credit score company that caused you so much trouble should be published. It will help other people choosing a credit agency, alert credit score company watchdogs and it will DEFINITELY get the attention of the COMPANY that did this to you. Good luck!

CONCERNED CITIZENMarch 21, 2014

TO HELEN …YOU CAN CONTACT YOUR LOCAL COURT WHERE THE CLAIM WAS ISSUED. THE APARTMENT MANAGER HAS TO HAVE SOME KNOWLEDGE OF IT, IF THEY WENT TO LEGAL MATTERS.

Helen La RoseMarch 21, 2014

I decided to close my account with a credit score company, because I wasn’t getting feedback. They offered me a half price fee and a free thirty day look at all my credit scores. My password didn’t work, so I wa given a temporary one. I went into my credit scores and found a gross error. An apartment complex that I lived in in 2009-2010 had me listed in a civil court and a judgment in the amount of over $1500 for not paying the last month’s rent. This was complete inaccurate. I did not owe them this money. I called the apt mgr who no record of this and told me to call the management who the apt complex. They told me to fax them all copies from the three credit reporters, as all had it listed. I called my credit score company. the first person couldn’t get me through with a temporary pass, and then told me I should not need it since nothing changed since I saw it the week before. I called back and spoke with a gentleman who tried to help, but was not successful either. I told him I wore hearing aids and he needed to speak clearer. He tried by spelling relating each letter to a word, but spoke so fast, and along with the thick accent , made incomprehensible. Then I told him that my 14 year old granddaughter was going to listen, but when she took the phone he said he didn’t know her and could only speak to me. At this point I figured that I spent about
1 1/2 hours just trying to get into my report, and it never happened. I finally gave up. This was yesterday. I am so frustrated, and can’t believe I am paying for this service. In addition, I have to go through this again today because I have to get copies of these reports. Any advice?

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These responses are not provided or commissioned by the credit card issuer. Responses have not been reviewed, approved or otherwise endorsed by the credit card issuer. It is not the credit card issuer's responsibility to ensure all posts and/or questions are answered.

About Author

Polina Polishchuk

Polina is a NextAdvisor editor who covers credit report monitoring services, Internet fax, email marketing services and online diet programs, among other consumer and business services. She is a UC Berkeley graduate who currently resides in the San Francisco Bay Area and previously wrote for CNET. When she's not tinkering with online services, she's going to shows, rock climbing or eating sushi.

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